Kagara commenced base metal production in North Queensland through a trial mining exercise of the Mt Garnet open pit, adjacent to the Mt Garnet treatment facilities.

The Mount Garnet open pit was completed in June 2008 and a portal for the development of the underground ore body commenced in March 2008. Development ore became available for treatment in February 2009.

Mining of the rich Surveyor pit commenced in 2003 and proved to be a company-maker for Kagara. Subsequent exploration delineated the high-grade Dry River South underground base metal deposit, which is now mined from a decline off the side of the Surveyor pit.

An exploration decline to access the Dry River South extension was developed during 2009. However, Kagara decided to suspend polymetallic development and mining operations at both Dry River South and the nearby Balcooma underground mines in late 2008 in response to the prevailing economic climate.

The rehabilitation of the Dry River South decline was completed in late 2008 and both operations have been placed on care and maintenance.

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